No date set for personal vehicle fees: transport minister

A Transport Ministry proposal to collect fees from personal vehicle users does not state the exact time for the collection, which means it need not apply this year, Transport Minister Dinh La Thang said Sunday.

Thang said the ministry did not mention the exact time for the collection given economic difficulties the country is facing.

Under the ministry's proposal submitted to the government last month, motorbikes would have to pay between VND500,000-VND1 million (US$23.70-$47.50) per year. Cars would have to pay between VND20-VND50 million (US$951-$2,300) annually.

The ministry also proposed that cars, with the exception of public transports and buses, be required to pay fees of between VND30,000-VND50,000 (US$1.40-$2.40) when entering or leaving local city centers during rush hour.

The ministry said the proposal aims to reduce the use of personal vehicles, thus reducing road accidents and traffic congestion.

The proposal has attracted some controversy. Many experts have expressed doubts that it would help reduce the number of personal vehicles.

They said motorbikes have for long been the most effective transportation means for Vietnamese people, while only very well-off people could afford cars. It would, therefore, be difficult to get both target groups to leave their vehicles at home and switch to public transportation.

At the Sunday press conference, Thang said the ministry had made some changes in the proposal.

It has lowered the fees for cars from VND20-50 million to VND10-25 million. With around 600,000 cars operating in the country, the ministry would collect VND12-15 trillion per year and the money will be invested in traffic infrastructure, Thang said.

As for motorbikes, the fee collection will apply for motorbikes in five centrally-governed cities – Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and Can Tho, according to Thang.

The transport ministry will task local People’s Councils with deciding when the fees will be collected.

If the proposal is approved by Prime Minister Nguyen Tan Dung, it will t be submitted to the National Assembly’s Standing Committee for approval.